Suppose we morally ought to maximise social welfare. Suppose profit maximisation is a means to maximise social welfare. Does this imply that we morally ought to maximise profits? Many proponents of the view that we have a moral obligation to maximise profits (tacitly) assume the validity of this argument. In this paper, we critically assess this assumption. We show that the validity of this argument is far from trivial and requires a careful argumentative defence.

Papers originally presented at a symposium in Bad Homburg, Germany, in April 1993.

In this paper I: (1) Describe something of the present situation in the United States and briefly contrast this with the state of affairs in other nations of the industrialised world. I emphasise health care but also allude to other social conditions: health care is merely one institution of a society and, just as do its other institutions, the system of health care reflects the basic world-view of that society. (2) Sketch the world-view and the philosophy which underwrites the use (...) of a market system in distributing what are acknowledged to be critically important social goods like health care and higher education. I show that a well-functioning market can indeed be useful when it comes to distributing some, but not when distributing other goods. (3) Suggest that when competition and the market are used to ‘regulate’ health care, technology—instead of being used to benefit patients—is apt to be used primarily to maximise individual profit: it becomes a weapon between what is often painted as ‘warfare’ among health care providers and institutions. I argue that this state of affairs is based on an undue emphasis upon the demands of individual freedom to the detriment of the community. Finally (4) I suggest an alternative approach to balancing individual with communal interests, an approach which is neither based on a predominance of one with neglect of the other, nor on a dialectic balance between them, but rather upon an approach which sees both individual and communal interests as modifying forces in a complex homeostatic balance. Individual success, in any civilised sense of the term, is possible only in a viable and well-functioning community, and a well-functioning community is not possible without individual success: the two are inevitably interdependent and linked. (shrink)

A survey was carried out among two groups of undergraduate economics students and four groups of students in mathematics, law, philosophy and business administration. The main survey question involved a conflict between profit maximisation and the welfare of the workers who would be fired to achieve it. Significant differences were found between the choices of the groups. The results were reinforced by a survey conducted among readers of an Israeli business newspaper and PhD students of Harvard. It is (...) argued that the overly mathematical methods used to teach economics encourage students to lean towards profit maximisation. (shrink)

All capitalist economies experience fluctuations in employment and economic activity around a long-term growth rate. How is this cyclical pattern of growth to be explained? Are the causes of fluctuations in output and employment to be found outside the system or are they intrinsic to the system? Will the long-term growth rate correspond to the growth of the labour force? It is the search for answers to these questions which motivates Peter Skott's analysis. The book develops a theory of dynamic (...) interaction between three types of agent: firms, households and banks. Firms are profit-maximisers operating under conditions of imperfect competition and their production and investment decisions are influenced by monetary and financial factors as well as by the state of the labour market. Households hold financial assets, supply labour and have a direct influence on nominal wage rates. Banks set interest rates on bank loans and deposits. No assumptions are made about nominal price rigidities and the capital-output ratio is determined endogenously. Using a framework of analysis which is rigorous and which does not exclude traditional neoclassical mechanisms, this book demonstrates the validity of important Marxian and Keynesian insights into the growth process. (shrink)

Traditional agricultural systems in Mediterranean Europe were characterised by diversity and multifunctionality, and polycultures played a fundamental role in them. Some of these farm systems and the traditional agricultural practices linked to them have now largely disappeared, but they are increasingly recognised as a valuable source of agroecological knowledge. In this study, we seek to recover the long-lost experience from a traditional Mediterranean intercropping system that combined the cultivation of vines and cereals. Using local historical resources available for a Catalan (...) village for the second half of the nineteenth century, we compare the characteristics and functioning of intercropping and monocultures of vines and cereals using socioeconomic and agrarian metabolism indicators, and discuss the advantages of the traditional intercropping system as an adaptation to the productive limitations of the agroecosystem (particularly in terms of soil quality and productivity, and availability of labour and draft force), but also as a peasant economy strategy that responded to a multifunctional balancing rationale. This way, this research contributes to recovering the knowledge and experience of a long-lasting traditional crop system that had been used until the second half of the twentieth century, and provides an understanding of the rationale and advantages of traditional Mediterranean crop systems beyond productivity and profit maximisation strategies. (shrink)

This article documents the response of cooperative institutions that were required to adhere to new capital adequacy regulations traditionally geared for profit-maximising organisations. Using data from the Australian credit union industry, we demonstrate that the cooperative philosophy and internal corporate governance structure of cooperatives will lead management to increase capital adequacy ratios through the application of accounting window dressing techniques. This is opposite to the intended purpose of template regulation aimed at efficiently increasing operating margins and lowering risk. Our (...) results raise several debatable issues regarding the ethics of accounting management and the imposition of one-shoe-fits-all external regulation. (shrink)

This paper explores the claims made by various authors that the fair-trade network provides an initial basis for a challenge to the commodification of goods under global capitalism. Proponents of fair trade generally advance two essential arguments in this regard. First, they claim that fair trade reveals the social and environmental conditions under which goods are produced and brings producers and consumers together through 'ethical consumerism', which challenges the commodification of goods into items with an independent life of their own. (...) Second, they argue that fair trade affirms non-economic values of co-operation and solidarity which challenge the capitalist imperatives of competition, accumulation, and profit-maximisation. Drawing from cases in the fair-trade coffee sector, these assertions are critically examined and it is argued that, while fair trade can provide a symbolic challenge to commodity fetishism, in the end this challenge is strictly limited by the power of global market imperatives and the network's market-driven approach. (shrink)

While dominant management thinking is steered by profit maximisation, this paper proposes that sustained organisational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. The leadership thinking of Kautilya and Ashoka embodies this principle. Both offer a common good approach, emphasising the leader's moral and legal responsibility for people's welfare, the robust interaction between the business community and the state, and the importance of (...) moral training of leaders in identifying and promoting the common good. We argue that the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. As Ashoka said: ‘A good deed is a difficult thing’. (shrink)

The traditional role of evolutionary theory in the social sciences has been to explain the existence of an object in terms of the survival of the fittest. In economics this approach has acted as a justification for hypotheses such as profit maximisation, or the existence of institutions in terms of their overall efficiency. This volume challenges that view and argues that one of the first tasks of economic theory should be to explain the enormous diversity of institutional arrangements (...) that has characterised human societies. (shrink)

We consider the problem of pricing in a network industry focussing in particular on the issue of cross-network pricing (e.g. cross-network cell phone charges). Economic theory tells us in relation to cross-network pricing that collusion or network monopoly may yield welfare as well as profit benefits although any welfare benefits from cross-network collusion may be more than offset by a reduction in competition elsewhere. To address this, we introduce a new regulatory concept: the independent profit-maximising agent. The agent (...) sets prices on cross-network goods taking either (i) a complete, or (ii) an arbitrarily small, share of the associated profit. We examine welfare and profits with and without agent type (i) and (ii) with collusion (network monopoly) between the non-agent firms and without collusion (independent network duopoly). We show that splitting up the network monopoly (creating independent network duopoly) may be inferior for both society and firm(s) compared with a network monopoly ‘regulated’ by an agent and that society always prefers any of the four agent regimes over network monopoly and network duopoly. Indeed, employing the agent may reduce welfare losses by a large proportion while having relatively little effect on profit. (shrink)

Currently there is an inequity in transfer rates of uninsured patients versus their insured counterparts. While this may vary by hospital system, studies indicate that this is a national trend, especially in emergency situations, and represents a prioritisation of profits over ethical obligations. This creates a variety of ethical issues for patients and society that generates a concordance between deontological and utilitarian viewpoints, two generally opposed schools of thought. The prioritisation of profit maximisation in order to provide better (...) care for a select population is insufficient to justify deleterious health outcomes, stress and financial burden on patients. Current policy regarding patient transfers in the emergency department is insufficient to protect the uninsured and must be reevaluated. (shrink)

It appears that there is a conflict of values running through business ethics between profits accruing to shareholders and the cost of entrepreneurial activities on wider stakeholders. In the ethics research literature, the multiplicity of normative ethical stances has resulted in much debate but little in the way of consistent policy proposals. There is, by comparison, an extensive literature in positive economics that attempts to resolve value conflicts similar to those faced by business ethicists. In this paper the adoption of (...) positive welfare statements are advocated and the value judgements implicit in economics are used as the starting point. It is argued that there is merit in expressly stating a set of value judgements to demonstrate the intractable nature of finding a social consensus without a positive social welfare function that explicitly weights the values. This paper reviews the arguments surrounding corporate objectives, particularly with regard to ethical considerations and the profit maximisation orthodoxy. This is discussed within the stakeholder‐stockholder narrative. A range of ethical positions in the management strategy literature are analysed and discussed. It is argued that the values underpinning business ethics research can be conceived of via a function of social welfare (including an ethical ‘auctioneering’ model). The paper concludes by suggesting that all ethical positions can be captured by a Bergson‐type welfare function. (shrink)

As 'disruption' is currently becoming the new buzzword in boardrooms, this book advocates that the most striking opportunity for business today is making itself relevant to its stakeholders. By presenting a new route via innovative business models, a transformational corporate approach to stakeholder-orientated value creation is advocated in the form of a new stakeholder management framework. This conceptual framework provides both a theoretical and practical management solution for re-inventing the organisation via an enlightened perspective of the purpose of business in (...) society. The new approach transforms the existing business model via an inclusive, collaborative, connected mechanism of stakeholder value creation into an innovative business model through which the corporation mobilises the investment, conversion, and sustainability of the resources it employs in ways which are designed to be optimally relevant to its stakeholders. The overall impact results in innovative business models serving as catalysts for creating stakeholder-orientated value in place of the traditional, more narrowly-focused shareholder profit-maximisation aim of conventional business models. (shrink)

This article empirically investigates how Chinese executives and managers perceive and interpret corporate social responsibility (CSR), to what extent firms' productive characteristics influence managers' attitudes towards their CSR rating, and whether their values in favour of CSR are positively correlated to firms' economic performance. Although a large proportion of respondents express a favourable view of CSR and a willingness to participate in socially responsible activities, we find that the true nature of their assertion is linked to entrepreneurs' instincts of gaining (...) economic benefits. It is the poorly performing firms, or rather, firms with vulnerable indicators -smaller in size, State-owned, producing traditional goods and located in poorer regions that are more likely to have managers who opt for a higher CSR rating. Managers' personal characteristics per se are not significant in determining their CSR choice. Moreover, controlling for other observed variables, we find that managers' CSR orientation is positively correlated with their firms' performance. The better-off a firm is, the more likely its manager is to get involve in CSR activities. Firms with better economic performance before their restructuring would sustain higher postrestructuring performance. (shrink)

Banks face a dilemma in choosing between maximising profits and facilitating the sustainable use of resources within a carbon-constrained future. This study provides empirical evidence on this dilemma, investigating whether a bank loan announcement for a firm with high carbon risk conveys information to investors about the firm’s carbon risk exposure collected through a bank’s pre-loan screening and ongoing monitoring. We use a sample of 120 bank loan announcements for ASX-listed firms over the period 2009–2015. We measure high carbon risk (...) exposure based on whether firms meet the reporting threshold of the NGER scheme. We document positive and significant excess loan announcement returns for loan renewals for high carbon risk firms, but not for loan initiations. Further, we document a more significant loan announcement return for renewals with favourable term revisions. Finally, we find no evidence that the market differentiates between domestic and foreign lenders. Taken together, our results suggest that investors perceive that banks incorporate carbon risk considerations into their lending decisions. Our results highlight the value of banks as financial intermediaries given the information asymmetry surrounding firms’ carbon risk exposure, and more generally the need to extend modern banking theory to consider issues such as the impact of banks’ CSR reputation on lending decisions. (shrink)

Companies' urge to maximise their profits and their attempts to remain in the highly competitive globalised market gave birth to the TQM concept and have kept it alive. TQM is a comprehensive look which encompasses virtually every aspect of the value chain as well as the human resource and customer satisfaction. Therefore, a great number of companies feel obliged to implement its rules, and procedures. However, the concept is rather complicated and culture-bound, and calls for further research in new settings. (...) The aim of this study is to examine the influences of critical success factors of TQM on customer focus therefore, employees are classified based on their perceptions from critical success factors of total quality management and consequently the level of customer focus is compared between the different classifications. The findings reveal that there is significant difference on the level of the customer focus between the established groups of employees. (shrink)

Corporate Philanthropy is multi-dimensional, differs between sectors and involves both individual and organisational decision-making to achieve business and social goals. However, the CP literature characteristically focuses on strategic decisions made by business leaders and ignores the role of employees, especially those in lower status and lower paid positions. To redress this imbalance, we conducted a qualitative study of employees’ involvement in CP processes in ten workplaces in the South East of England to identify whether and how they are involved in (...) CP decision-making and to capture their perspective on the nature of CP and the benefits generated by such activities. We specifically chose to study workplaces where employees are involved in the actual execution of the CP strategy, prioritising companies with a visible presence on the high street. The results illustrate the benefits of involving employees in CP decision-making, which we argue derives in part from the ‘liminal-like states’ that typify CP activities organised by shop floor staff, involving the temporary overturning of hierarchies, humanising of workplaces and opportunities for lower level staff to prioritise their personal philanthropic preferences and signal their charitable identity to colleagues and customers. Whilst the data also suggest that CP decision-making remains predominantly top-down and driven by profit-oriented goals, we conclude that employees should be involved in choosing charitable causes as well as in designing and implementing workplace fundraising, in order to maximise the advantages of CP for the company and for wider society. (shrink)

Deals with one of the most critical business issues of the century, the question of corporate responsibility. The author reconstructs and critically evaluates the arguments for the maximisation of profits, versus those to be found in the broader context of increased social responsibility.

L’article explore les rapports entre l’espace, les publics, l’argent et le temps à travers une évolution de divers lieux de rassemblement à Saint-Pétersbourg dans les années 1990-2010. Prenant leur essor durant la période de « l’entre-deux » systèmes, les clubs émergent tels une expérience « underground », un temps continu vécu par une communauté dans un lieu régulier affranchi des impératifs de rentabilité. Durant les années 2000, les clubs subissent une marchandisation, irrégulière et décalée, qui les amène à passer à (...) une ouverture quasi-permanente en diversifiant l’offre de programmation et de consommation. Une partie des clubs, des bars, ainsi que les « time-cafés » émergeant dans les années 2010, visent dès lors à se constituer des noyaux de publics fidèles, à les maintenir longtemps sur place en soignant un « entre-soi », des sociabilités à la fois ouvertes et exclusives, protégées par certains mécanismes de sélection. Cette composante « sociabilité » l’emporte progressivement sur la composante artistique, elle suspend le principe de maximisation du profit et tend à privilégier un usage libre du temps. Cette tendance semble être reprise par certains établissements culturels d’Etat en quête de modernisation, se positionnant dès lors comme des lieux de rassemblement de proximité. (shrink)

This article starts with a case outlining ethical challenges encountered in participatory action research (PAR) on vaccine hesitancy in rural India during Covid-19. Community researchers were recruited by a not-for-profit organisation, with the aim of both discovering the reasons for vaccine hesitancy and encouraging take-up. This raised issues about the roles and responsibilities of local researchers in their own communities, where they might be blamed for adverse reactions to vaccination. They and their mentor struggled with balancing societal protection against (...) individual rights to make choices. These themes are explored in two commentaries discussing the difficulties in balancing ethics in public health (prioritising societal benefits), social research (protecting participants from harm and respecting their rights not to be involved) and participatory research practices (maximising democratic participation and decision-making). As discussed in the first commentary, often these cohere, but tensions can arise. The second commentary also raises the issue of epistemic justice, questioning the extent to which the villagers could have a say in the design, implementation and interpretation of the research, and the dangers of not hearing the voices and arguments of people who reject vaccination. The case and commentaries highlight the complexities of PAR and additional challenges in a public health context. (shrink)

The biggest research programme within business ethics is arguably Corporate Social Responsibility and all its related streams (Corporate Citizenship, Social Justice, etc.) While there seems to be widespread agreement that business ethics is situated between the amoral or even immoral view of Milton Friedman as explicated in his 1970 New York Times paper, and the moral view expounded by R. Edward Freeman, this essay challenges that view. Friedman, maybe owed to his flamboyant writing style and crude and purely rhetorical oversimplifications (...) has been misinterpreted to advocate for managers to be completely amoral maximisers of profitability. This misinterpretation has become common wisdom, despite him clearly stating that the law and the moral standards of surrounding society must limit profit-seeking behaviour. Freeman's stakeholder theory, on the other hand, is seen as being on the other end of the continuum, arguing for selflessness—another misinterpretation, as I argue with Ed Freeman's help. Instead, I suggest that both Friedman and Freeman represent the virtuous mean of the business ethics continuum and not its extremes because they both base their theories on the idea of the free and socially embedded individual. The two vicious ends of the continuum are inhabited by the unreal, atomised, completely a-social and selfish individual on the one end, and by the equally unreal collectivised self-less individual on the other. The mainstream in business ethics has declared the collective and selfless end to be the ideal that must guide practice and research. The selfish and the selfless strawmen have prevented a proper debate in business ethics for too long. (shrink)

MANY thinkers deny the possibility of businessmen having responsibilities or ethical obligations. A businessman has no alternative, in view of the competition of the market-place, to do anything other than buy at the cheapest and sell at the dearest price he can. In any case, it would be irrational-if, indeed, it were possible-not to do so. Admittedly, there is a framework of law within which he has to operate, but that is all, and so long as he keeps the law (...) he is free to maximise his profits without being constrained by any moral or social considerations, or any further sense of responsibility for what he does. (shrink)

In 1995 Barbara Held, professor of Psychology , published what is, I think, the first book of its kind - Back to Reality: A Critique of Postmodern Theory in Psychotherapy - a book not about how to do psychotherapy, but about how we should think about doing it. The work engages in a vigorous examination of the recent antirealist trend in psychotherapy and it opens up an important and timelyepistemological debate, but its conclusion - that postmodern (narrative) therapists ought to (...) reject antirealism in favour ofa modest realism - is based on a fundamental misinterpretation of the originary aim behind the adoption of an antirealist epistemology. It is Held’s contention that the narrative therapy movement adopted antirealism as a means of “maximizing individuality” in therapy, a goal which canand should be achieved by way of realism. I suggest here that, to the contrary, the aim of this epistemological shift was the resolution of strictly epistemological problems, and that a return to realism would be antithetical to this aim.En 1995, Barbara Held,professeure de psychologie, a publié ce qui, à mon avis, est un livre inouï: Back to Reality: A Critique of Postmodern Theory in Psychotherapy. L’ouvrage entreprend un examen critique des tendances antiréalistes que l’on retrouve dans la psychothérapie aujourd‘hui et ouvre un débat épistémologique important et opportun. Cependant, sa conclusion, à l’effet que les thérapeutes postmodernes (narratifs) devraient rejeter l’antirealisme au profit d’un réalisme modeste, se fonde sur une interprétation erronée du but premier de l’épistémologie antiréaliste. Held soutient que le mouvement de thérapie narrative a adopté l’antiréalisme afin de “maximiser l’individualité” en thérapie, un but qui peut et devrait être atteint plutôt par le réalisme. Ici, je prétends au contraire que letournant épistémologique a été entrepris dans le but de résoudre des problèmes strictement épistémologiques, et qu’un retour au réalisme serait contraire à ce but. (shrink)

Until recently, businesses and corporations could argue that their only real commitments were to maximise the return to their shareholders whilst staying within the law. However, the world has changed significantly during the last ten years and now most major corporations recognise that they have significant responsibility to local and global societies beyond simply making profit. This means that there is now an increasing concern with the question of how corporations, and their employees, ought to behave, and this leads (...) us to consider ethics as the appropriate theoretical and philosophical domain.I will bring into the debate two relatively recent approaches to ethics: Jürgen Habermas's discourse ethics ; and the critical realist approach of Roy Bhaskar. These are interesting for several reasons: they both draw on traditional ethical theories, although different ones; they bring in innovations of practical relevance; and they both share an over-arching critical perspective. After a critical introduction to both ethical theories, their similarities and differences are explored. The article ends by considering the extent to which they may be practically useful within business. (shrink)

Throughout most of the 20th century Management Accounting was developed on the premise that it should help managers to decide how best to maximise the short-term financial profits of their businesses. In the emergent Corporate Social Responsibility (CSR) business environment Post, Preston and Sachs1 ask, ‘To whom and for what is the corporation responsible?’. In response to this question we examine publications describing recent changes in the corporate environment, and provide evidence of business decisions being made on the bases of: (...) environmental, societal and other criteria, besides those relating to financial profitability. We question whether such changes in the corporate environment are being reflected in the way that Management Accounting is being taught in business schools today. We provide details of a final year course that we have developed at our university. (shrink)

Les philosophies et les sciences humaines sont des fabriques de l'homme, selon le double sens du génitif. Elles sont fabriquées par des hommes, mais elles fabriquent aussi l'homme, en tant qu'elles véhiculent une représentation de ce qui le constitue et (ou) du rapport qu'il entretient avec ce qui n'est pas lui (nature, société). La construction d'un discours impose en effet une grille de lecture, un découpage et une articulation du réel. Aussi, en dépit de l'effort que l'on rencontre parfois pour (...) élaborer des discours sans présupposé ontologique sur la nature humaine, une prise de position au sujet de l'homme semble en fait inévitable. Prendre par exemple pour point de vue celui de l'individu ou, au contraire, celui du tout social n'est pas neutre mais il s'agit déjà d'une façon de régler le rapport de l'un à l'autre. Et partir d'un homme ramené au statut d'agent rationnel visant à maximiser son profit est un choix massif qu'il convient d'analyser. Mais, s'il y a toujours, en philosophie morale et politique, ou dans les sciences humaines, des présupposés anthropologiques, on ne trouve pas forcément dans, ou à l'arrière-plan de tout discours sur les hommes, l'admission d'une essence générique de l'homme; autrement dit, le présupposé peut être aussi de contestation. Quoi qu'il en soit, il faut mettre en évidence un personnage abstrait, parfois assumé, parfois caché et parfois contesté donc, mais toujours là à sa façon, à défaut d'être à chaque fois opératoire. (shrink)

The widespread association of business with maximising profit has tended to obscure its social dimension. Indeed some writers doubt whether business can ever be socially engaged and others claim that it should not. This paper seeks to show that besides seeking profit businesses can properly practise social responsibility, defined as involving themselves in their communities and engaging in non-profit activities. It explores the ways in which business social responsibility can contribute to social capital, the resources created by (...) social bonds which members of a society can draw upon and which make it possible to achieve otherwise unattainable ends.2. (shrink)

Business ethicists draw extensively on Aristotle’s work in defining the purpose of the business corporation. Insights from ancient authors can be valuable in illuminating contemporary issues, but we should be wary of enlisting their authority for our views without paying careful attention to what they might have intended by what they said in their own social and economic context. Business ethicists have argued that the business corporation should be a community within which its members can live a good life; that (...) its purpose should not be to maximise profits; and that it should integrate itself into a range of wider communities beyond its own boundaries and serve their interests. Aristotle would have agreed that the business corporation should not seek to make as much profit as possible, although he might have accepted that – in the light of modern developments in economic management - it should make enough profit to fund projects that would be beneficial to society. Aristotle’s view that the polis provided the setting in which people could best live a good life does not justify the claim that the business corporation can or should serve a similar purpose. Aristotle believed that people should strive for enough and not too much in several contexts, not only in acquiring wealth, but also in defining the size and scope of the community of which they should be members. Some expansive, contemporary views on the communities into which the business corporation should integrate itself are alien to Aristotle’s thinking. (shrink)

On connaît la définition donnée par Jean-François Lyotard de la condition postmoderne : faute de pouvoir croire aux grands récits d'émancipation universelle qui ont dynamisé la modernité (progrès de la raison civile, affranchissement du prolétariat), notre époque en serait réduite à un culte aveugle de la pure efficacité visant, dans tous les domaines de la vie sociale, à minimiser les coûts et maximiser les profits. Et dans la mesure où 'le critère d'opérativité est technologique', c'est-à-dire sans pertinence pour 'juger du (...) vrai et du juste', il en résulterait une profonde crise de légitimité, où serait à chercher la spécificité de notre époque historique. Une éthique moins prédatrice du rapport à autrui va-t-elle émerger spontanément de la course à la productivité qu'agence la compétition du marché? Ou est-ce seulement en résistant aux tendances inhérentes à cette course que l'on pourra imposer une structure sociale plus juste? En d'autres mots : la justice est-elle un (sous-) produit du marché libre (comme le défendent les disciples d'un Hayek)? Ou implique-t-elle au contraire l'asservissement de ce marché à une logique extérieure qui en limite le fonctionnement et la portée (comme l'ont soutenu depuis longtemps les partisans d'une 'économie morale', ressuscités aujourd'hui en dénonciateurs de l''horreur économique')? (shrink)

Malgré bien des réductions journalistiques, la rationalité économique fondée sur l’idée de l’homo oeconomicus – un individu atome qui maximise son propre intérêt à travers un calcul utilitariste de coûts et de profits – est aujourd’hui l’objet de nombreuses critiques. L’article analyse ainsi deux types de critiques : une critique externe et une critique interne. Les deux soulignent que pour comprendre la rationalité économique, nous avons besoin d’un horizon anthropologique plus vaste, apte à mettre en discussion l’image de l’homme à (...) l’œuvre dans les diverses déclinaisons de l’économie. L’article met alors l’accent sur les recherches de l’anthropologie philosophique portant sur la nature humaine, qui montrent le caractère intrinsèquement relationnel des êtres humains, et peut mettre en discussion l’individualisme méthodologique de l’homo oeconomicus. Finalement, en décrivant la rationalité en termes de rationalité, et en mettant l’accent sur la catégorie de biens relationnels développée par l’approche fondée sur « l’économie sociale », l’article met en avant une façon possible de repenser la rationalité économique. (shrink)

This paper analyses the arguments for two competing ethical models of business. On the one hand there are theorists like Milton Friedman who claim that the sole social responsibility of business leaders is to maximise stockholder profits. On the other, there are those who argue that a business has ethical responsibilities to many stakeholders: employees, stockholders, retailers, customers, and so on. I argue that a business has ethical responsibility over those functions and purposes over which it has the most autonomous (...) control. The production and selling of products and services for customers is the primary purpose of a business. The generation of profit is a contingent purpose dependent on the exchange between the business and the customer. I define excellent functioning businesses as those that synergise the purposes of stakeholders to provide products and services with ethical outcomes. When ethical considerations and business interests between stakeholders conflict, the responsibility of a business to its customers has primacy over those related to business input stakeholders such as employees, stockholders and suppliers. (shrink)

New challenges are constantly emerging in the social sector in South Africa. Various social (non-profit) organisations are developing new and innovative ways to accommodate these challenges and to meet social needs. The aim of this research article is to measure the current social innovation capacity of the Dutch Reformed Church (DR Church), with reference to innovation capabilities, to determine at what level the church is meeting new social needs. Semi-structured interviews were conducted to collect data from six different congregations (...) and a governing body in the Pretoria area, South Africa, was included. Twelve participants were interviewed between August and October 2017. The participants, consisting of ministers and board members, each held a management position. The social innovation capacity measurement of the DR Church showed that the organisation was successfully developing new ways to serve as a social agent in society. There are obstacles that prohibit the DR Church from developing new innovative ways to meet the social needs of its society, for example, entrepreneurial, developmental and leadership change capacities. Recommendations are made to maximise social innovation capacity of the managers (ministers and board members). (shrink)

La crise de 2008 est une crise de gouvernance des entreprises, notamment des banques, qui, pour faire des profits élevés, sont allées jusqu’à compromettre leur existence. Comment faire en sorte que l’entreprise ne soit pas seulement préoccupée de maximiser le cours de l’action, alors que jusque dans les sciences sociales, elle est réduite à cela? L’entreprise est apparue à la fin du XIX e siècle pour révolutionner la vie quotidienne grâce aux découvertes scientifiques. L’entreprise est une association de partenaires dans (...) une création collective de modes de vie, dont les partenaires financiers, mais aussi les ingénieurs, les consommateurs, le personnel. Il faut refonder l’entreprise et qu’elle se donne une mission qui exprime son projet à long terme et à laquelle souscrivent les actionnaires. (shrink)

Accurate measurement of livestock weight is a primary indicator in the meat industry to increase the economic gain. In lambs, the weight of a live animal is still usually estimated manually using traditional scales, resulting in a tedious process for the experienced assessor and stressful for the animal. In this paper, we propose a solution to this problem using computer vision techniques; thus, the proposed procedure estimates the weight of a lamb by analysing its zenithal image without interacting with the (...) animal, which speeds up the process and reduces weighing costs. It is based on a data-driven decision support system that uses RGB-D machine vision techniques and regression models. Unlike existing methods, it does not require walk-over-weighing platforms or special and expensive infrastructures. The proposed method includes a decision support system that automatically rejects those images that are not appropriate to estimate the lamb weight. After determining the body contour of the lamb, we compute several features that feed different regression models. Best results were achieved with Extra Tree Regression ($R^{2}$=91.94%), outperforming the existing techniques. Using only an image, the proposed approach can identify with a minimum error the optimal weight of a lamb to be slaughtered, so as to maximise the economic profit. (shrink)

Virtual assistants (VAs), like Amazon’s Alexa, Google’s Assistant, and Apple’s Siri, are on the rise. However, despite allegedly being ‘assistants’ to users, they ultimately help firms to maximise profits. With more and more tasks and leeway bestowed upon VAs, the severity as well as the extent of conflicts of interest between firms and users increase. This article builds on the common law field of fiduciary law to argue why and how regulators should address this phenomenon. First, the functions of VAs (...) resemble established fiduciaries, namely mandataries when they perform tasks on behalf of users, and increasingly advisors whenever they provide recommendations or suggestions. Second, users grant firms deploying VAs ever more discretion over their economic, and more and more significant non-economic interests, such as their health or finances. This delegation of power renders users vulnerable to abuse of power and inadequate performance by firms deploying VAs. Moreover, neither specification or monitoring nor market forces are alternatives that can sufficiently protect users. Thus, regulation is needed, departing from the recognition of the relationship between firms deploying VAs and users as a fiduciary relationship. In the EU, this could be realised through fiduciary requirements for VAs. First and foremost, to adequately protect users from abuse of power by firms deploying VAs, the core fiduciary duty of loyalty should be converted into corresponding fiduciary requirements for VAs, obliging firms to align VAs with their users. (shrink)

There is a general consensus among economists that the notion of rationality plays a central role in microeconomics. It is important to note, however, that they are far from agreement on the meaning of this notion. It would be difficult to lay out a set of welldefined concepts of rationality, but it might be useful to distinguish three quite different approaches around which economists tend to situate themselves when characterising this notion. I prefer to refer to three "approaches" rather than (...) to three concepts, as I did in the title of the paper, because the concepts of rationality which correspond to these approaches cannot be isolated easily. Indeed, their unsettled definitions often overlap, and even when they purport to be related to opposing approaches, they are more or less interrelated. In any case, I propose to refer to these three approaches as "rationality-purposefulness", "rationality-efficiency", and "rationality-consistency". According to rationalitypurposefulness, an action is rational if and only if it is oriented towards the satisfaction of the agent's purpose, as most Austrian economists would tend to say. According to rationality-efficiency, an action is rational if and only if it actually maximises a positively valued magnitude such as utility or profit, as many neoclassical economists would say, especially when adopting a traditional approach. By contrast, rationality-consistency states that choices are rational if and only if it they are consistent as a set, which implies in particular that they are transitive. (shrink)

I argue that Grafen’s formal darwinism project could profitably incorporate a gene’s-eye view, as informed by the major transitions framework. In this, instead of the individual being assumed to maximise its inclusive fitness, genes are assumed to maximise their inclusive fitness. Maximisation of fitness at the individual level is not a straightforward concept because the major transitions framework shows that there are several kinds of biological individual. In addition, individuals have a definable fitness, exhibit individual-level adaptations and arise in (...) a major transition, only to the extent that the inclusive-fitness interests of genes within them coincide. Therefore, as others have suggested, the fundamental level at which fitness is maximised is the gene level. Previous reconciliations of the concepts of gene-level fitness and individual-level fitness implicitly recognise this point. Adaptations always maximise the fitness of their causative genes, but may be simple or complex. Simple adaptations may be controlled by single genes and be maladaptive at higher levels, whereas complex adaptations are controlled by multiple genes and rely on those genes having coinciding fitness interests at a higher level, for a given trait. (shrink)

The past three decades have seen a decline in traditional industries in the United Kingdom and there has been a relative decline in the value of physical assets to the UK economy. At the same time, the value of intangible assets seen in intellectual property rights have increased considerably. As such, IP rights represent important assets for companies and often comprise the foundation for market dominance and continued profitability. There is a structural uncertainty in the law relating to the use (...) of IP as collateral for the purpose of raising debt finance and this may impact upon the survival of firms with high ratios of intangible to tangible assets. This article considers the proper goals for an effective credit and security regime in IP. It examines the significance of the availability of collateral to the lending decision and also considers whether the reluctance to maximise the use of IP as security reflects inherent difficulties which arise out of the nature of IP as economic assets. This has implications for the reform of English personal property security law and the development of bright line priority rules associated with Article 9 of the US Uniform Commercial Code which is often cited as a model for reform of English law. (shrink)

The article presents the idea that the maximisation of profit seems not to be the most important goal for contemporary enterprises. The author – basing on literature and empirical research – tries to indicate those activities undertaken by enterprises in the interest of the local community that have an impact not only on building managers' mental well-being and quality of life. They are also different kinds of CSR activities, but they could also be considered as proof of changing (...) the economic model. The article ends with conclusions in which the author tries to answer the following question: what kind of profit could bring about the realisation of that new model. (shrink)

It has been hypothesised that the reimbursement system pertaining to radiotherapy is influencing prescription practices for patients with cancer with bone metastases. In this paper, we present and discuss the results of an empirical study that was undertaken on patient records, referred to radiotherapy for the treatment of bone metastases, in a medium-size city, in southern Brazil, during the period of March 2006 to March 2014. Our findings seem to confirm this hypothesis: after a change in the reimbursement method, radiation (...) prescriptions were adapted accordingly, in order to maximise profits. Once such patients become highly vulnerable due to their diagnoses, they also become susceptible to a subtle form of exploitation; physicians let patients believe that more radiation will be better for their health, and they do so despite knowing otherwise, and as it seems, out of pecuniary interests. (shrink)

The personality traits of social work leaders are important factors influencing ethical decision-making in organisations. The lack of empirical evidence with regard to the relationship between personal authenticity and ethical decision-making in social work stimulated the present study. Two hundred thirty-eight leaders (81.9% female) from organisations working in various fields of social work were administrated with the Authenticity Scale, Managerial Ethical Profile, and conducted two free association tasks with the cue words authenticity and self. Authenticity was positively correlated with ethical (...) decision-making. In contrast, authenticity was not correlated with the tendency to make decisions in an effort to maximise economic profit for the organisation. The results of the present study have important practical implications for the social work sector. The positive correlation of authenticity with ethical decision-making indicates that positive reinforcement of authenticity in leaders could possibly lead to supporting ethical decision-making within an organisation. Therefore, supporting authenticity in leaders working in social work may also help foster quality services and prevent unethical behaviour. (shrink)

During the past few years information has increasingly become a commodity. As a commodity the atypical cost structure of information goods in competitive markets result in the price of reproduction of information goods tending to zero implying that market failure is highly likely. Intellectual property rights prevent such market failure by protecting the ability of creators and/or distributors to charge for information goods and as such serve to stimulate and support the creation of information. But information also plays a vital (...) role in enabling people‘s human rights in their everyday lives and it is therefore of paramount importance that such information be accessible. Pricing of information is one of the main factors determining accessibility and pricing strategies should aim to maximise access not just profit and thereby contribute to a socially just world. This paper examines the nature and pricing of information goods and suggests differential pricing of information goods based Rawls‘ principles of social justice. (shrink)

The African business practice of kalabuleism, like capitalism, has at the basis of its business ethics, the belief that it is not wrong to maximise profits. Any system of distribution or marketing that permits businessmen and women to maximise profits in the sale or distribution of basic goods that are in short supply is bound to aggravate the situation for an already starving people such as are to be found in Africa. The adoption of wholesale capitalism in conditions of acute (...) shortage of basic (as well as non-basic) goods, is unconducive to the invention or practice of or belief in Akan-like or Christian-like ethics. Hence, central planning with respect to the necessities of life seems to me to be necessary in many parts of the Third World; and the African attempt to revolutionalize business ethics merely by means of coup d'etats, is likely to be counter-productive. (shrink)

ABSTRACT:Profit maximizers have reasons to agree with stakeholder theorists that managers may need to consider different values simultaneously in decision making. However, it remains unclear how maximizing a single value can be reconciled with simultaneously considering different values. A solution can neither be found in substantive normative philosophical theories, nor in postulating the maximization of profit. Managers make sense of the values in a situation by means of the many thick value concepts of ordinary language. Thick evaluation involves (...) the simultaneous consideration of different values: making sense of a value always involves knowing how to engage with it given the other values in the situation. This also goes for profit: maximization is only one way of engaging with the value of profit, and grasping whether maximization is appropriate involves considering other values. We discuss some consequences of our approach for stakeholder theorists and profit maximizers. (shrink)

In this article, we use ideas from stakeholder capital maintenance theory to address tensions in allocating firm profits between stockholders and other stakeholders. We utilize a mediative thought experiment to conceptualize how multiple stakeholder interests might better be served, such that genuine firm profits (from new value creation) versus artificial firm profits (from non-wealth-producing transfers) may be identified and incentivized. We thereby examine how such accounting transfers can be envisioned as stakeholder capital to be maintained for the benefit of both (...) the firm and the economy. We present examples to illustrate the hypothetical model proposed and its implications. (shrink)

Profit Sharing is one of the reinforcement learning methods. An agent, as a learner, selects an action with a state-action value and receives rewards when it reaches a goal state. Then it distributes receiving rewards to state-action values. This paper discusses how to set the initial value of a state-action value. A distribution function ƒ( x ) is called as the reinforcement function. On Profit Sharing, an agent learns a policy by distributing rewards with the reinforcement function. On (...) Markov Decision Processes (MDPs), the reinforcement function ƒ( x ) = 1/ L x is useful, and on Partially Observable Markov Decision Processes (POMDPs), ƒ( x ) = 1/ L w is useful, where L is the sufficient number of rules at each state, and W is the length of an episode. If episodes are always long, the value of the reinforcement function is little. So the differences of rule values become little, and the agent learns little by using the roulette selection as an action selection. This problem is called as Learning Speed Problem. If the value of the reinforcement function for an action is very higher than its state-action value, an agent will not select other action. There is a problem when its action is not a optimal action. This problem is called as Past Experiences Problem. This paper shows that both Learning Speed Problem and Past Experiences Problem are caused by the bad setting between the initial values of a state-action values and the function values of a reinforcement function. We propose how to set the initial values of a state-action values at each state. The experiment shows that an agent can learn correctly even if the length of episode is large. And shows the effectiveness on both MDPs and POMDPs. Our proposed method focuses on the initialization of state-action values and does not limit reinforcement functions. So it can apply to any reinforcement function. (shrink)